Category: Management Notes

Manufacturing system

There is no single concept of a manufacturing system covering all industries in every detail. It is necessary to examine the fundamental properties and characteristics of a range of systems and to consider the way they are synthesized and operated before consolidating general conclusions. What is seen depends very much on the viewpoint and the narrowness of the focusing range. Nevertheless there is much to be gained from a fundamental study of-all aspects of manufacturing systems and their interactions since there are opportunities for technology transfer between industries

Manufacturing systems must be designed by taking into account both steady state and-dynamic performance, whilst ensuring there is an adequate number of controllable variables to compensate the effects of uncontrolled disturbances. The technological process part of the manufacturing system is synthesized from interacting unit-operation subsystems, and this itself is a subsystem of the overall business system. The business system has a complex multivariate nature and for its effective control it is important that information flows and plans or set points are well defined to allow people to be effective controllers of the system.

Types of Manufacturing Systems

1. Custom Manufacturing Systems

Custom manufacturing is by far the oldest and most popular type of manufacturing system in existence. It also happens to be associated with both the highest-quality products and the lowest-volume efficiency.

In the custom manufacturing system, each item is produced by a single craftsperson, who works solely by hand or with the help of a machine. When machines are used, they tend to be highly specialized to their task and cannot produce more than one item at a time.

This system will tend to have the highest unit cost for the product manufactured. As a result, custom-manufactured products are of the highest quality but are also the most expensive products in the market.

2. Intermittent Manufacturing Systems

The intermittent manufacturing system allows companies to make different types of goods using the same production line. Therefore, the manufacturing facility is designed to handle different product sizes and requirements. Generally, the goods are processed in lots to fulfill orders.

This system is commonly referred to as a “job shop” due to its popularity in countries with relatively cheap labor making products for multinationals based thousands of miles away. The goods made using this manufacturing method are produced in small quantities, so they may not be suitable for stock. Customization is typically done post-purchase.

This type of system is designed for production runs that happen intermittently, hence the name, or products that don’t require high volumes. It uses general purpose machines and requires highly skilled labor.

3. Continuous Manufacturing Systems

Continuous manufacturing systems are designed to enable the mass production of a single product. The product goes through an assembly line with different stations where parts are added or worked on a little further. This method first arose during the Industrial Revolution and is most closely associated with the Ford Company, which employed the system to produce Model Ts in the 1920s.

This type of production system is ideal when a company has very high volume targets since it reduces the unit cost of the product. It does, however, require a massive capital injection at startup due to the investment in equipment and labor required.

4. Flexible Manufacturing Systems

Flexible manufacturing is a modern manufacturing system that has become very popular. It involves a significant investment in machinery, although it reduces labor costs by implementing robots eschewing human labor altogether. These machines can easily be reconfigured to manufacture different products in different quantities, and the whole process is automatic.

This method is called flexible manufacturing due to the flexibility in the variety of high-volume goods it can produce. Due to the automated process, quality control is a lot easier, and unit costs are low.

CLASSIFICATION OF PRODUCTION SYSTEMS

1. MASS PRODUCTION

Manufacture of discrete parts or assemblies using a continuous process are called Mass Production. This production system is justified by very large volume of production. The machines are arranged in a line or product layout. Product and process standardization exists and all outputs follow the same path.

Mass Production is characterized by

• Standardization of product and process sequence
• Dedicated special purpose machines having higher production capacities and output rates
• Large volume of products
• Shorter cycle time of production
• Lower in process inventory
• Perfectly balanced production lines
• Flow of materials, components and parts is continuous and without any back tracking
• Production planning and control is easy
• Material handling can be completely automatic

Advantages of Mass Production

Following are the advantages of Mass Production:-

• Higher rate of production with reduced cycle time.
• Higher capacity utilization due to line balancing
• Less skilled operators are required
• Low process inventory
• Manufacturing cost per unit is low

Limitations of Mass Production

Following are the limitations of Mass Production:-

• Breakdown of one machine will stop an entire production line
• Line layout needs major change with the changes in the product design
• High investment in production facilities
• The cycle time is determined by the slowest operation

2. BATCH PRODUCTION

American Production and Inventory Control Society (APICS) defines Batch Production as a form of manufacturing in which the job pass through the functional departments in lots or batches and each lot may have a different routing. It is characterized by the manufacture of limited number of products produced at regular intervals and stocked awaiting sales.

Batch Production is characterized by-

• Shorter production runs
• Plant and machinery are flexible
• Plant and machinery set up is used for the production of item in a batch and change of set up is required for processing the next batch
• Manufacturing lead-time and cost are lower as compared to job order production

Advantage of Batch Production

Following are the advantages of Batch Production:-

• Better utilization of plant and machinery
• Promotes functional specialization
• Cost per unit is lower as compared to job order production
• Lower investment in plant and machinery
• Flexibility to accommodate and process number of products
• Job satisfaction exists for operators

Limitation of Batch Production

Following are the limitations of Batch Production:-

• Material handling is complex because of irregular and longer flows
• Production planning and control is complex
• Work in process inventory is higher compared to continuous production
• Higher set up costs due to frequent changes in set up

3. JOB-SHOP PRODUCTION

Job-shop production are characterized by manufacturing one or few quantity of products designed and produced as per the specification of customers within prefixed time and cost. The distinguishing feature of this is low volume and high variety of products.

A job-shop comprises of general-purpose machines arranged into different departments. Each job demands unique technological requirements, demands processing on machines in a certain sequence.

Job-shop Production is characterized by:-

• High variety of products and low volume
• Use of general purpose machines and facilities
• Highly skilled operators who can take up each job as a challenge because of uniqueness
• Large inventory of materials, tools, parts
• Detailed planning is essential for sequencing the requirements of each product, capacities for each work centre and order priorities

Advantage of Job-shop Production

Following are the advantages of Job-shop Production:-

• Because of general purpose machines and facilities variety of products can be produced
• Operators will become more skilled and competent, as each job gives them learning opportunities
• Full potential of operators can be utilized
• Opportunity exists for Creative methods and innovative ideas

Limitation of Job-shop Production

Following are the limitations of Job-shop Production:-

• Higher cost due to frequent set up changes
• Higher level of inventory at all levels and hence higher inventory cost
• Production planning is complicated
• Larger space requirements

4. PROJECT PRODUCTION

Project production is characterized by complex sets of activities that must be performed in a particular order within the given period and within the estimated expenditure. Where output of a project is a product, such products are generally characterized by immobility during transformation. Operations of such products are carried out in “fixed position assembly type of layout” which can be observed in production of ships, locomotive and aircraft, construction of roads, buildings, etc.

Characteristics of Project Production

(i) Definite beginning and definite end

Each project has a definite beginning and a definite end.

(ii) “Fixed position” layout

Where the output of a project is a product, such products are generally characterized by immobility during transformation. Operations on such products are carried out in “fixed position assembly type of layout” which can be observed in production of ships, locomotive, aircraft, construction of roads/ buildings, etc.

(iii) High cost overruns

Often delays take place in the completion of the projects. Such delays are generally very expensive due to escalation in the cost of factors of production and incident of penalties.

(iv) Personnel problems

Project production has many personnel related problems namely:-

• When there is a fast build up, staff is either borrowed from other departments or hired for short duration. Therefore, personnel involved in the project have limited (or short lived) interest in the project.
• Since each project has a limited duration, the staff starts spending more time forgetting prepared for the next project.
• Site for the project may be in the underdeveloped region and it may change from project to project which causes dislocation of the normal life.

Importance of Project Production

(i) Non-uniform requirement of resources

Requirement of resources for project production is not uniform. At the end of the project, resources from the project are redeployed elsewhere in other projects. Even during the life of the project, requirement of resources is not uniform. Generally resource requirement (men, materials, money, etc.) in the beginning of the project is low which builds up fast with the progress of the project as more and more resources are absorbed, and then it levels off until there is gradual cutback as the project approaches completion.

(ii) Involvement of different agencies

A project generally involves many tasks, each having its own specialization to be performed by different agencies. The tasks generally have strict precedence (i.e. certain tasks must be completed before the next begins) amid as such co-ordination between agencies is of utmost importance.

(iii) Scheduling and control

Because of large number of activities, involvement of different agencies and strict precedence requirements, scheduling and control assumes great importance. Some network planning techniques like PERT and CPM have been found to be very useful to overcome the problems mentioned above.

Location of an industry is an important management decision. It is a two-step decision: first, choice of general area or region and second, the choice of site within the area selected. Location decision is based on the organizations long-term strategies such as technological, mar­keting, resource availability and financial strategies.

The objective of plant location decision-making is to minimize the sum of all costs affected by location.

Plant location is important because of the following:

(i) Location influences plant layout facilities needed.

(ii) Location influences capital investment and operating costs.

Location decisions are strategic, long-term and non-repetitive in nature. Without sound and careful location planning in the beginning itself, the new facilities may create continuous operating problems in future. Location decision also affects the efficiency, effectiveness, produc­tivity and profitability.

The location decision should be taken very carefully, as any mistake may cause poor location, which could be a constant source of higher cost, higher investment, difficult marketing and transportation, dissatisfied and frustrated employees and consumers, frequent interruptions of production, abnormal wastages, delays and substandard quality etc.

Therefore, it should be based upon a careful consideration of all factors that are essentially needed in efficient running of a particular industry. The necessary factors in the selection of plant location vary among industries and with changing technical and economical conditions.

Site selection is not an easy problem because if the selection is not proper then all money spent on factory building, machinery and their installation etc., will go as waste and the owner has to suffer a great loss. Therefore, while selecting a site, owner must consider technical, commercial, financial aspects which may provide maximum advantages.

Nature of Plant Location

Plant location with thorough analysis leads the organization towards success. The basic objective of organization is to maximize the profit level. Hence, it will be beneficial for both i.e. newly established business & already established business. The profit maximization can be done by increasing sales price, increasing sales with reduced production cost, by analyzing market trend, nature & level of competition etc. Production cost can also be reduced, if firm is located at a place where all the basic requirements (that fulfill input needs) will be available easily.

Selection of appropriate location is necessary due to following reasons:

• Plant location partially determines operating and capital cost. It determines the nature of investment.
• Each plant location requires some basic facilities like transportation, availability of water, electricity, fuel, cheap labors etc.
• Each prospective location implies a new allocation of capacity to respective market area.
• Government plays an important role in the choice of the location keeping in view the national benefits.

Plant location and Layout in Production Management

Plant location or the facilities location problem is an important strategic level decision making for an organization. One of the key features of a conversion process (manufacturing system) is the efficiency with which the products (services) are transferred to the customers. This fact will include the determination of where to place the plant or facility.

The selection of location is a key-decision as large investment is made in building plant and machinery. It is not advisable or not possible to change the location very often. So an improper location of plant may lead to waste of all the investments made in building and machinery, equipment.

Before a location for a plant is selected, long range forecasts should be made anticipating future needs of the company. The plant location should be based on the company’s expansion plan and policy, diversification plan for the products, changing market conditions, the changing sources of raw materials and many other factors that influence the choice of the location decision. The purpose of the location study is to find an optimum location one that will result in the greatest advantage to the organization.

Methods of plant layout

1. Process chart

It is a graph containing details regarding various activities and operations taking place in the organization from start to the last stage of the work.

2. Process flow diagram

This is an aid to process chart. This relates to details regarding position of machines, area covered by each machine, internal transportation and other operations pertaining to production. This model diagram is prepared on the paper.

3. Templates

The area covered by a machine is cut to scale from a thick paper to form a template. Not only machines but space covered by furniture, equipment and other components can also form a template. These can be well arranged representing the actual plan of layout to be undertaken.

4. Models

Three dimensional wooden models of machinery, equipment and other devices and components can be prepared. By seeing these models even a layman can form an idea about the layout of the plant. But this technique is very costly and only big concern can afford to install such a measure.

5. Drawings

Layout drawings can be got prepared by drafts men showing walls, stairways, machines and equipment etc.

6. Machine data card

These cards are tied with different machines operating in the plant. These obtain valuable information regarding various salient features or characteristics of machines viz., efficiency, capacity space area covered by the machine and technique of operating the machine etc.

TYPES OF PLANT LAYOUT

Four Main Types of Plant Layout

1. Product or Line Layout

If all the processing equipment and machines are arranged according to the sequence of operations of the product, the layout is called product type of layout. In this type of layout, only one product of one type of products is produced in an operating area. This product must be standardized and produced in large quantities in order to justify the product layout.

The raw material is supplied at one end of the line and goes from one operation to the next quite rapidly with a minimum work in process, storage and material handling. Fig. 1 shows product layout for two types of products A and B.

Advantages offered by Product Layout

(i) Lowers total material handling cost

(ii) There is less work in processes

(iii) Better utilization of men and machines

(iv) Less floor area is occupied by material in transit and for temporary storages

(v) Greater simplicity of production control

(vi) Total production time is also minimized

Limitations of Product Layout

(i) No flexibility which is generally required is obtained in this layout

(ii) The manufacturing cost increases with a fall in volume of production

(iii) If one or two lines are running light, there is a considerable machine idleness

(iv) A single machine break down may shut down the whole production line

(v) Specialized and strict supervision is essential

2. Process or Functional Layout

The process layout is particularly useful where low volume of production is needed. If the products are not standardized, the process layout is more low desirable, because it has creator process flexibility than other. In this type of layout, the machines and not arranged according to the sequence of operations but are arranged according to the nature or type of the operations. This layout is commonly suitable for non repetitive jobs.

Same type of operation facilities are grouped together such as lathes will be placed at one place, all the drill machines are at another place and so on. See Fig. 8.4 for process layout. Therefore, the process carried out in that area is according to the machine available in that area.

Advantages of Process Layout

(i) There will be less duplication of machines. Thus, total investment in equipment purchase will be reduced.

(ii) It offers better and more efficient supervision through specialization at various levels.

(iii) There is a greater flexibility in equipment and man power thus load distribution is easily controlled.

(iv) Better utilization of equipment available is possible.

(v) Break down of equipment can be easily handled by transferring work to another machine/work station.

(vi) There will be better control of complicated or precision processes, especially where much inspection is required.

Limitations of Process Layout

(i) There are long material flow lines and hence the expensive handling is required.

(ii) Total production cycle time is more owing to long distances and waiting at various points.

(iii) Since more work is in queue and waiting for further operation hence bottle necks occur.

(iv) Generally, more floor area is required.

(v) Since work does not flow through definite lines, counting and scheduling is more tedious.

(vi) Specialization creates monotony and there will be difficult for the laid workers to find job in other industries.

3. Fixed Position Layout

This type of layout is the least important for today’s manufacturing industries. In this type of layout the major component remain in a fixed location, other materials, parts, tools, machinery, man power and other supporting equipment’s are brought to this location.

The major component or body of the product remain in a fixed position because it is too heavy or too big and as such it is economical and convenient to bring the necessary tools and equipment’s to work place along with the man power. This type of layout is used in the manufacture of boilers, hydraulic and steam turbines and ships etc.

Advantages Offered by Fixed Position Layout

(i) Material movement is reduced

(ii) Capital investment is minimized.

(iii) The task is usually done by gang of operators, hence continuity of operations is ensured

(iv) Production centers are independent of each other. Hence, effective planning and loading can be made. Thus total production cost will be reduced.

(v) It offers greater flexibility and allows change in product design, product mix and production volume.

Limitations of Fixed Position Layout

(i) Highly skilled man power is required.

(ii) Movement of machines equipment’s to production centre may be time consuming.

(iii) Complicated fixtures may be required for positioning of jobs and tools. This may increase the cost of production.

4. Combination Type of Layout

Now a days in pure state any one form of layouts discussed above is rarely found. Therefore, generally the layouts used in industries are the compromise of the above mentioned layouts. Every layout has got certain advantages and limitations. Therefore, industries would to like use any type of layout as such.

Flexibility is a very important factory, so layout should be such which can be molded according to the requirements of industry, without much investment. If the good features of all types of layouts are connected, a compromise solution can be obtained which will be more economical and flexible.

Whatever be the type of layout being contemplated, the following factors are to be considered because these factors have got significant influence on the design of the layout.

1. Man Factor

The man is very flexible element who can be made suitable for all sort of layouts.

Main considerations are as follows:-

(i) Safety and working conditions.

(ii) Man power requirements-skill level of workers, their number required and their training programme.

(iii) Man power utilization in the plant.

(iv) Human relations.

2. Material Factor

It includes the various input materials like raw materials, semi-finished parts and materials in process scrap, finished products, packing materials, tools and other services.

The main considerations are:-

(i) Design and specifications of the product to be manufactured.

(ii) Quantity and variety of products and materials.

(iii) Physical and chemical characteristics of various input materials.

(iv) Component parts or material and their sequence of operations i.e. how they go together to generate the final product.

3. Machinery Factor

The operating machinery is also one of the most important factors therefore all the information’s regarding equipment and the tools are necessary for inspection, processing and maintenance etc.

(i) The processes and methods should be standardized first.

(ii) Machinery and tools selections depend upon the type of process and method, so proper machinery and other supporting, equipment should be selected on the basis of volume of production.

(iii) Equipment utilization depends on the variation in production, requirements and operating balance. Machines should be used to their optimum levels of speed, feed and depth of cut.

(iv) Machinery requirement is mostly based on the process/method

(v) Maintenance of machines and replacement of parts is also important.

4. Movement Factor

It mainly deals with the movement of men and materials. A good layout should ensure short moves and should always tend towards completion of product. It also includes interdepartmental movements and material handling equipment. This includes the flow pattern reduction of unnecessary handling, space for movement and analysis of handling methods.

5. Waiting Factor

Whenever material or men is stopped, waiting occurs which costs money. Waiting includes handling cost in waiting area, money tied up with idle material etc.

Waiting may occur at the receiving point, materials in process, between the operations etc.

The important considerations in this case are:-

(a) Location of storage or delay points

(b) Method of storing

(c) Space for waiting

(d) Safeguard equipment for storing and avoiding delay.

6. Service Factor

It includes the activities and facilities for personnel such as fire protection, lighting, heating and ventilation etc. Services for material such as quality control, production control, services for machinery such as repair and maintenance and utilities liked power, fuel/gas and water supply etc.

7. Building Factor

It includes outside and inside building features, shape of building, type of building (single or multistory) etc.

8. Flexibility Factor

This includes consideration due to changes in material, machinery, process, man, supporting activities and installation limitations etc. It means easy changing to new arrangements or it includes flexibility and expendability of layouts.

SEVEN MAJOR FACTORS AFFECTING PLANT LAYOUT

1. Policies of management

It is important to keep in mind various managerial policies and plans before deciding plant layout.

Various managerial policies relate to future volume of production and expansion, size of the plant, integration of production processes; facilities to employees, sales and marketing policies and purchasing policies etc. These policies and plans have positive impact in deciding plant layout.

2. Plant location

Location of a plant greatly influences the layout of the plant. Topography, shape, climate conditions, and size of the site selected will influence the general arrangement of the layout and the flow of work in and out of the building.

3. Nature of the product

Nature of the commodity or article to be produced greatly affects the type of layout to be adopted. In case of process industries, where the production is carried in a sequence, product layout is suitable. For example, soap manufacturing, sugar producing units and breweries apply product type of layout. On the other hand in case of intermittent or assembly industries, process type of layout best suited. For example, in case of industries manufacturing cycles, typewriters, sewing machines and refrigerators etc., process layout method is best suited.

Production of heavy and bulky items need different layout as compared to small and light items. Similarly products with complex and dangerous operations would require isolation instead of integration of processes.

(4) Volume of production

Plant layout is generally determined by taking into consideration the quantum of production to be produced. There are three systems of production viz.,

(a) Job production

Under this method peculiar, special or non- standardized products are produced in accordance with the orders received from the customers. As each product is non- standardized varying in size and nature, it requires separate job for production. The machines and equipment’s are adjusted in such a manner so as to suit the requirements of a particular job.

Job production involves intermittent process as the work is carried as and when the order is received. Ship building is an appropriate example of this kind. This method of plant layout viz., Stationery Material Layout is suitable for job production.

(b) Mass production

This method involves a continuous production of standardized products on large scale. Under this method, production remains continuous in anticipation of future demand. Standardization is the basis of mass production. Standardized products are produced under this method by using standardized materials and equipment. There is a continuous or uninterrupted flow of production obtained by arranging the machines in a proper sequence of operations. Product layout is best suited for mass production units.

(c) Batch production

It is that form of production where identical products are produced in batches on the basis of demand of customers or of expected demand for products. This method is generally similar to job production except the quality of production.

Instead of making one single product as in case of job production a batch or group of products is produced at one time, It should be remembered here that one batch of products has no resemblance with the next batch. This method is generally adopted in case of biscuit and confectionary manufacturing, medicines, tinned food and hardware’s like nuts and bolts etc.

5. Availability of floor space

Availability of floor space can be other decisive factor in adopting a particular mode of layout. If there is a scarcity of space, product layout may be undertaken. On the other hand more space may lead to the adoption of process layout.

6. Nature of manufacturing process

The type of manufacturing process undertaken by a business enterprise will greatly affect the type of layout to be undertaken.

A brief mention of various processes is given us under:

(i) Synthetic process

Under this process two or more materials are mixed to get a product. For example, in the manufacture of cement, lime stone and clay are mixed.

(ii) Analytical process

This is just the reverse of synthetic process. Under this method different products are extracted from one material. For example, from crude oil, petroleum, gas, kerosene and coal tar etc. are extracted.

(iii) Conditioning process

Under this process the original raw material is given the shape of different products and nothing is added to it. Jute is an important example of this kind.

(iv) Extractive process

This method involves the extraction of a product from the original material by the application of heat or pressure. This involves the process of separation, for example, aluminium is separated from bauxite

7. Repairs and maintenance of equipment and machines

The plant layout should be designed in such a manner as to take proper care with regard to repairs and maintenance of different types of machines and equipment being used in the industry. The machines should not be installed so closely that it may create the problems of their maintenance and repairs. It has been rightly said that “Not only should access to parts for regular maintenance such as oiling, be considered in layout but also access to machine parts and components when replacement and repair are fairly common”.

Layouts can be classified into the following five categories

• Process Layout
• Product Layout
• Combination Layout
• Fixed Position Layout
• Group Layout

1. Process Layout

Process layout is recommended for batch production. All machines performing similar type of operations are grouped at one location in the process layout e.g., all lathes, milling machines, etc. are grouped in the shop will be clustered in like groups.

Thus, in process layout the arrangement of facilities are grouped together according to their functions. A typical process layout is shown in the following figure. The flow paths of material through the facilities from one functional area to another vary from product to product. Usually the paths are long and there will be possibility of backtracking.

Process layout is normally used when the production volume is not sufficient to justify a product layout. Typically, job shops employ process layouts due to the variety of products manufactured and their low production volumes.

Advantage of Process Layout

• In process layout machines are better utilized and fewer machines are required.
• Flexibility of equipment and personnel is possible in process layout.
• Lower investment on account of comparatively less number of machines and lower cost of general purpose machines.
• Higher utilization of production facilities.
• A high degree of flexibility with regards to work distribution to machineries and workers.
• The diversity of tasks and variety of job makes the job challenging and interesting.
• Supervisors will become highly knowledgeable about the functions under their department.

Limitation of Process Layout    

• Backtracking and long movements may occur in the handling of materials thus, reducing material handling efficiency.
• Material handling cannot be mechanized which adds to cost.
• Process time is prolonged which reduce the inventory turnover and increases the in- process inventory.
• Lowered productivity due to number of set-ups.
• Throughput (time gap between in and out in the process) time is longer.
• Space and capital are tied up by work-in-process.

2. Product Layout

In this type of layout, machines and auxiliary services are located according to the processing sequence of the product. If the volume of production of one or more products is large, the facilities can be arranged to achieve efficient flow of materials and lower cost per unit. Special purpose machines are used which perform the required function quickly and reliably.

The product layout is selected when the volume of production of a product is high such that a separate production line to manufacture it can be justified. In a strict product layout, machines are not shared by different products. Therefore, the production volume must be sufficient to achieve satisfactory utilization of the equipment. A typical product layout is shown in the following figure.

Advantage of Product Layout

• The flow of product will be smooth and logical in flow lines.
• In-process inventory is less.
• Throughput time is less.
• Minimum material handling cost.
• Simplified production, planning and control systems are possible.
• Less space is occupied by work transit and for temporary storage.
• Reduced material handling cost due to mechanised handling systems and straight flow.
• Perfect line balancing which eliminates bottlenecks and idle capacity.
• Manufacturing cycle is short due to uninterrupted flow of materials.
• Small amount of work-in-process inventory.
• Unskilled workers can learn and manage the production.

Limitation of Product Layout

• A breakdown of one machine in a product line may cause stoppages of machines in the downstream of the line.
• A change in product design may require major alterations in the layout.
• The line output is decided by the bottleneck machine.
• Comparatively high investment in equipments is required.
• Lack of flexibility. A change in product may require the facility modification.

3. Combination Layout

A combination of process and product layouts combines the advantages of both types of layouts. A combination layout is possible where an item is being made in different types and sizes. Here machinery is arranged in a process layout but the process grouping is then arranged in a sequence to manufacture various types and sizes of products. It is to be noted that the sequence of operations remains same with the variety of products and sizes. The following figure shows a combination type of layout for manufacturing different sized gears.

Combination layout for making different types and sizes of gears

4. Fixed Position Layout

This is also called the project type of layout. In this type of layout, the material, or major components remain in a fixed location and tools, machinery, men and other materials are brought to this location. This type of layout is suitable when one or a few pieces of identical heavy products are to be manufactured and when the assembly consists of large number of heavy parts, the cost of transportation of these parts is very high.

Advantage of Fixed Position Layout

The major advantages of this type of layout are:

• Helps in job enlargement and upgrades the skills of the operators.
• The workers identify themselves with a product in which they take interest and pride in doing the job
• Greater flexibility with this type of layout
• Layout capital investment is lower

5. Group Layout (or Cellular Layout)

There is a trend now to bring an element of flexibility into manufacturing system as regards to variation in batch sizes and sequence of operations. A grouping of equipment for performing a sequence of operations on family of similar components or products has become all the important.

Group technology layout in Operation Management

Group technology (GT) is the analysis and comparisons of items to group them into families with similar characteristics. GT can be used to develop a hybrid between pure process layout and pure flow line (product) layout. This technique is very useful for companies that produce variety of parts in small batches to enable them to take advantage and economics of flow line layout.

The application of group technology involves two basic steps; first step is to determine component families or groups. The second step in applying group technology is to arrange the plants equipment used to process a particular family of components. This represents small plants within the plants. The group technology reduces production planning time for jobs. It reduces the set-up time.

Thus group layout is a combination of the product layout and process layout. It combines the advantages of both layout systems. If there are m-machines and n-components, in a group layout (Group-Technology Layout), the M -machines and n -components will be divided into number of machine-component cells (group) such that all the components assigned to a cell are almost processed within that cell itself. Here, the objective is to minimize the intercell movements.

The basic aim of a group technology layout is to identify families of components that require similar of satisfying all the requirements of the machines are grouped into cells. Each cell is capable of satisfying all the requirements of the component family assigned to it.

The layout design process considers mostly a single objective while designing layouts. In process layout, the objective is to minimize the total cost of materials handling. Because of the nature of the layout, the cost of equipments will be the minimum in this type of layout. In product layout, the cost of materials handling will be at the absolute minimum. But the cost of equipments would not be at the minimum if the equipments are not fully utilized.

In-group technology layout, the objective is to minimize the sum of the cost of transportation and the cost of equipments. So, this is called as multi-objective layout. A typical process layout is shown.

Advantage of Group Technology Layout

Group Technology layout can increase

• Component standardization and rationalization.
• Reliability of estimates.
• Effective machine operation and productivity.
• Customer service.

It can decrease the

• Paper work and overall production time.
• Work-in-progress and work movement.
• Overall cost.

Limitations of Group Technology Layout

This type of layout may not be feasible for all situations. If the product mix is completely dissimilar, then we may not have meaningful cell formation.

Material handling equipment (MHE) is mechanical equipment used for the movement, storage, control and protection of materials, goods and products throughout the process of manufacturing, distribution, consumption and disposal. The different types of handling equipment can be classified into four major categories: transport equipment, positioning equipment, unit load formation equipment, and storage equipment.

Importance of Material Handling Equipment

The basic importance of material handling is to choose most appropriate materials handling equipment which is safe and can fulfill material handling requirements at the minimum possible overall cost and to choose production machinery and assist in plant layout so as to eliminate, as far as possible, the need of materials handling. In general, the functions of good materials handling system include:

(a) Using the principles of centralization, unit load or cartelization, aim at moving optimum number of pieces in one unit.

(b) Safe, standard, efficient, effective, appropriate, flexible and proper sized materials handling equipments should be selected.

(c) To employ mechanical aids in place of manual labour in order to speed up the materials movement.

(d) To minimize the movement involved in a production operation.

(e) Changes in sequence of production operations may be suggested in order to minimize backtracking and duplicate handling.

(f) Handling equipments’ arrangement should minimize distance moved by products and at the same time handling equipments should not interfere with the production line.

(g) To minimize the distances moved, by adopting shortest routes.

(h) To design containers, packages, drums etc., to economise handling and to reduce damage to the materials in transit.

(i) To utilize gravity for assisting materials movement wherever possible.

(j) Materials handling equipments should periodically be resorted to check ups, repairs and maintenance.

Objective of Material Handling Equipment

The main objectives of material handling are as follows:

• It should be able determine appropriate distance to be covered.
• Facilitate the reduction in material damage as to improve quality.
• Reducing overall manufacturing time by designing efficient material movement
• Improve material flow control
• Creation and encouragement of safe and hazard-free work condition
• Improve productivity and efficiency
• Better utilization of time and equipment

Principles of Material Handling

Material handling principles are as follows:

(i) Orientation Principle

It encourages study of all available system relationships before moving towards preliminary planning. The study includes looking at existing methods, problems, etc.

(ii) Planning Principle

It establishes a plan which includes basic requirements, desirable alternates and planning for contingency.

(iii) Systems Principle

It integrates handling and storage activities, which is cost effective into integrated system design.

(iv) Unit Load Principle

Handle product in a unit load as large as possible

(v) Space Utilization Principle

Encourage effective utilization of all the space available

(vi) Standardization Principle

It encourages standardization of handling methods and equipment.

(vii) Ergonomic Principle

It recognizes human capabilities and limitation by design effective handling equipment.

(viii) Energy Principle

It considers consumption of energy during material handling.

(ix) Ecology Principle

It encourages minimum impact upon the environment during material handling.

(x) Mechanization Principle

It encourages mechanization of handling process wherever possible as to encourage efficiency.

(xi) Flexibility PrincipleEncourages of methods and equipment which are possible to utilize in all types of condition.

(xii) Simplification Principle

Encourage simplification of methods and process by removing unnecessary movements

(xiii) Gravity Principle

Encourages usage of gravity principle in movement of goods.

(xiv) Safety Principle

Encourages provision for safe handling equipment according to safety rules and regulation

(xv) Computerization Principle

Encourages of computerization of material handling and storage systems

(xvi) System Flow Principle

Encourages integration of data flow with physical material flow

(xvii) Layout Principle

Encourages preparation of operational sequence of all systems available

(xviii) Cost Principle

Encourages cost benefit analysis of all solutions available

(xix) Maintenance Principle

Encourages preparation of plan for preventive maintenance and scheduled repairs

(xx) Obsolescence Principle

Encourage preparation of equipment policy as to enjoy appropriate economic advantage.

Material handling operations are designed based upon principles as discussed above. Material handling equipment consists of cranes, conveyors and industrial trucks.

1. Suitability for Job Conditions

The Equipment must meet the requirement of the work, climate and working conditions.

2. Size of Equipment

Size of equipment should be such that it must be able to be used with other matching units.

If the equipment selected is of larger size, that will remain idle for most of the time or shall work on part loads, which means production cost will be more.

On other hand, if equipment is of smaller size than desired, the equipment will not be able to work with the matching equipments and hence other equipments will have to remain idle or to be allowed to work on part loads, which shall again be uneconomic.

3. Past Performance

If the equipment being purchased is of new make and models, it is desirable to enquire about its performance from other users, who are using this make and models.

4. Operating Requirements

The equipments selected should be easy to operate and maintain, acceptable to the operator and should have lesser fuel consumption.

5. Reliability of Equipment

Equipment selected for the project must be reliable one.

6. Economical Aspects

While selecting the equipment, it should be considered that cost of unit production should be minimum.

7. Service Support

Service Support should be available in the area of project where the equipment shall be used. Service after sales are major criteria for selection of equipment.

8. Use in Future Projects

When equipment completes only a part of their useful life in a project, it should be kept in view that the equipment can be used in future project and may not become obsolete.

9. Availability of Know-How

The equipment selected should be satisfactorily handled by available operators. Sophisticated equipment may give excellent performance but it may be difficult to handle and maintain.

10. Multipurpose Equipment (Versatility)

There are certain types of equipments which are not utilized fully. Therefore if possible, they must be capable of performing more than one function for example, excavator with wheel loader bucket arrangement or with rock breaker attachments.

11. Standardization

It is better to have same type and size of equipment in project. It means lesser spare parts reserve more interchangeability of parts if required, easy for the operators to understand it , mechanics will be aside to maintain and repair better as they become expert by handling similar type of equipment.

12. Availability of Spare Parts

While selecting a particular type or make of equipments, it should be ensured that the spare parts will be available at reasonable price throughout the working life of equipment. It should also be ensured that the downtime of the equipment for want for spare parts may not be more.

13. Availability of Equipment

The Equipment which is easily available in the market should be purchased. It should also be ensured that the equipment is of repute and is likely to be continued to be manufactured in future also. This is necessary for future standardization and ensuring spare parts supply. It is easy to dispose off such equipments after completion of project.

Material handling equipment (MHE) is equipment used to move, store or control material inside facilities. These facilities can include the manufacturing plants where the material is created or the disposal sites where it ends up. Large material handling equipment includes cranes, trucks and lifts. Smaller equipment includes things such as storage bins, dollies and even cartons. The purpose of material handling equipment is to quickly, safely and more easily move material when compared with doing it manually.

Material handling equipment is the machinery used for the transportation, storage and control of goods. The mechanical equipment used makes what would be a difficult job for someone, one that can be completed with ease.  Material handling equipment doesn’t just allow you to complete jobs faster, it also allows you to complete jobs without the risk of injuring yourself.

Transportation

Transportation refers to any type of material handling equipment that moves material from one spot to another. This can be from one facility to another, from one end of the facility to the other or simply from a docking platform to a storage area. Industrial trucks, haulers, cranes, conveyer belts and lifts are types of transportation equipment. Cranes are used to move material but are restricted to certain zones. Trucks can move material anywhere, and conveyor belts move material along a single path.

Positioning

Positioning equipment is used to make sure material is passed off safely. This can mean pivoting, turning or stacking the material. The equipment that handles positioned material can be transportation or storage equipment. Positioning equipment is mainly used to cut down on worker fatigue, ensure safer handling if the equipment is awkward to move manually, and move equipment that is too dangerous for human hands.

Unit Loads

Unit loads are equipment that stabilizes or holds equipment to avoid movement during transportation or storage. Pallets, skids, bags, cartons, load containers, crates, straps, wrapping, bins, baskets and racks are many of the different kinds of loading equipment. This equipment also allows more than one item of the same material to be held by one unit load. For example, an egg carton can carry a dozen eggs at once.

Storage

Storage allows material to sit in a facility, site or container for a long time until it is needed. Racks, bins, frames and shelves are common examples. However, there are many types of racks, including pallet racks, push-back racks, sliding racks and cantilever racks. The purpose of storage is to allow production to continue without having to stop because of an excess of the product being produced. Storage is also useful for keeping surpluses in case of a sudden demand or shortage elsewhere.

Control

In large manufacturing, storage, and disposal facilities, having a way to keep track of all of the material is important. Although it can be done manually on a smaller scale, large facilities rely on control and identification equipment. Items such as bar codes, radio frequency tags and magnetic strips make up a majority of control equipment.

Each of our types of material lifting equipment has its own height and weight limit. Be sure to read the product descriptions carefully before buying or hiring any material handling goods to make sure it fits your requirements.